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Homework answers / question archive / Which arguments would you use in order to "convert" a Keynesian to the Austrian School of Economics?
Which arguments would you use in order to "convert" a Keynesian to the Austrian School of Economics?
The most significant cause of economic miseries is political instability, inflation, and natural calamities, e.g., wildfires, among others. Australian economics supporters believe that recession occurs just like any other natural disaster, and for a short period. On the contrary, the Keynes theory states that the lack of government policies is the real cause of downturns whereby, the government is required to boost the economy by increasing its expenditure.
Therefore, for Keynes school of thought to operate like the Australian one, government regulations should come as a last result. Human and social elements should be given priority in the market to maximize productivity, employment rates, and also increase output per unit resource.
Therefore, the only purpose of government involvement is delivering relief in times of disaster, regulation of foreign investors, and protection on general human rights. Also, in providing services that the free market cannot offer, such as social amenities, but not on a pricing policy that acts as the fundamental pillar in the open market.